New buyout package heading to City Hall with layoffs likely following

Buyouts, followed by likely layoffs, are heading to City Hall as officials prepare for another $10 million shortfall.

City administrator Ed Mitchell sent a proposal to commissioners on Wednesday, who will then vote for a new buyout package at Monday’s commission meeting.

Mitchell said he’s anticipating $47 million in property tax revenue for the 2011-12 budget year, down from $54 million this year.

Last year, 55 employees took a buyout, which provided three months pay and six months of benefits. This time, Mayor Lois Frankel said, the city is looking to cut higher salaried employees by giving more incentive to workers with longer tenures.

Most employees, including police officers and firefighters, who have been at the city at least three years will be eligible.

Under the proposal, employees with:

- Less than five years at the city = One month pay

– 5 to 15 years = Two months pay

– More than 15 years experience = Three months pay

Anyone at the city 30 years or longer will obtain a bonus fourth month of pay.

Employees would have the option of keeping their benefits through the remainder of the calendar year, or choosing an additional $1,500 lump sum payment.

Mitchell said he won’t know how many layoffs would then be necessary, and it would depend on how many employees take a buyout.

Mayor-elect Jeri Muoio said layoffs are inevitable. “We can’t really say how many at this point. We’ll have some retirements and we’ll have to see how that all shakes out. But I’m sure we’ll have to (layoff employees).”

Commissioners Bill Moss and Kimberly Mitchell called the buyouts necessary. Commissioner Molly Douglas, who lost in last week’s mayoral race to Muoio and will be out of office on March 31, criticized the timing of the buyout as the city transitions mayors.

“I think it’s inappropriate, and I wonder if the soon-to-be seated mayor has signed off on it?” Douglas said. “She ought to have time to evaluate what’s going on. This is another knee jerk reaction to a problem.”

Muoio said Ed Mitchell met with her on Monday to tell her he was preparing the buyout package.

“I told him I thought it was a good idea,” Muoio said. “I knew they were putting something together, but I hadn’t seen the particulars.”

Frankel said the buyout package was necessary, regardless of the mayoral transition.